Canada's TerrAscend Q3 revenue beats estimates on Pennsylvania growth
TerrAscend reported third-quarter revenue of $68.2 million, up 4.8% year over year and above the $66.87 million consensus estimate. Adjusted EBITDA rose slightly from a year earlier, and the company authorized up to $10 million in share repurchases.
1. Revenue and earnings
TerrAscend said third-quarter revenue increased 4.8% year over year to $68.2 million, beating analyst estimates of $66.87 million. Gross margin was 52.3%, net income from continuing operations was a loss of $5.5 million, and adjusted EBITDA rose slightly from the prior year.
2. Pennsylvania and New Jersey
The company said revenue growth was primarily driven by retail and wholesale growth in Pennsylvania. Its acquisition of Aunt Mary's dispensary in New Jersey added revenue and was immediately accretive to EBITDA and cash flow; TerrAscend also said it gained sales and market share across key product categories in New Jersey.
3. Capital and expansion
TerrAscend renewed its share buyback program, authorizing up to $10 million in repurchases. It said it is evaluating additional acquisition opportunities, plans to continue expanding retail in New Jersey, and remains focused on driving top-tier adjusted EBITDA margins.
